Belated Return vs Revised Return: Key Differences Explained
When it comes to filing income tax returns in India, adhering to deadlines is crucial to ensure compliance with the law and avoid penalties. However, due to various reasons, many taxpayers miss the original deadline for filing their returns. The Income Tax Act, 1961, provides provisions to address such situations, allowing taxpayers to file belated returns or revised returns.
A belated return is filed when a taxpayer misses the original filing deadline, while a revised return is filed to correct errors or omissions in the original or belated return. Understanding the distinctions between these two types of returns is essential for taxpayers, as each type has specific deadlines, penalties, and eligibility criteria.
Table of Contents
Belated Return Under Section 139(4)
A belated return is filed by a taxpayer when they miss the original deadline for filing their income tax return. The original filing deadline for individual taxpayers (not subject to audit) is typically July 31st of the assessment year. For those whose accounts are audited, the deadline is extended to September 30th. However, when the taxpayer misses these deadlines, they are still allowed to file a belated return under Section 139(4) of the Income Tax Act, 1961.
When Must a Belated Return Be Filed?
The belated return must be filed by December 31st of the assessment year for non-audit cases for the assessment year (AY) 2024-25. The extended deadline for the AY 2024-25 offers taxpayers some additional time to file their returns. This provision is designed to give taxpayers a chance to comply with tax obligations, even after the original deadline has passed.
Legal Framework of Belated Return
Section 139(4) of the Income Tax Act allows taxpayers to file a belated return after the original due date. However, filing a belated return comes with certain conditions. For instance, a late fee is applicable, which can be as high as ₹5,000 for those who miss the deadline. However, taxpayers with an income of ₹5 lakh or less are subject to a reduced penalty of ₹1,000. Additionally, taxpayers who fail to file their return on time will be required to pay interest at 1% per month on any outstanding tax liability from the original due date until the return is filed.
It's important to note that from FY 2023-24, belated returns can only be filed under the new tax regime. This means that taxpayers who were eligible for deductions under the old tax regime will not be able to claim those deductions while filing a belated return.
Key Points About Belated Returns
Filing Deadline
A belated return is filed when a taxpayer misses the original deadline for submitting their income tax return. Typically, the deadline for filing an original return is July 31 for individuals who do not require an audit, and September 30 for those whose accounts are audited. However, if you miss these deadlines, you still have the option to file a belated return. For the Assessment Year (AY) 2024-25, the government has extended the deadline for filing belated returns to January 15, 2025. For other assessment years, the usual deadline for non-audit cases is December 31, and for audit cases, it is September 30.
Penalty
When filing a belated return, taxpayers may incur a late fee as per the provisions under Section 234F of the Income Tax Act. The penalty for filing a belated return can go up to ₹5,000. However, for taxpayers whose total income is less than ₹5 lakh, the maximum penalty is reduced to ₹1,000. The penalty aims to encourage timely tax filing while providing some relief to those with lower incomes.
Interest
In addition to the late filing penalty, interest is charged on the overdue tax amount. The interest is calculated at 1% per month from the due date of filing the return until the date the return is filed. This interest is levied under Section 234A, and the amount can add up if there is a significant delay in filing the return and paying the tax dues.
Tax Regime
Starting from Financial Year 2023-24, belated returns can only be filed under the new tax regime. This means that taxpayers who file belated returns will not be able to claim deductions and exemptions available under the old tax regime. This restriction makes it essential for taxpayers to carefully consider their tax regime when filing returns, as the new regime offers lower tax rates but does not allow the benefit of various deductions.
Eligibility
Anyone who was required to file an original return but missed the deadline is eligible to file a belated return. It is important to note that a belated return can be filed under Section 139(4) even if the original return was not filed on time, as long as the filing is within the prescribed deadline, which may vary based on the assessment year. Taxpayers who miss the original deadline but wish to avoid penalties or interest can benefit from this provision, ensuring compliance and minimizing financial consequences.
Revised Return Under Section 139(5)
A revised return allows taxpayers to correct any errors or omissions made in their original return or belated return. Whether you made an honest mistake in reporting income, missed claiming deductions, or need to amend any other part of the tax filing, a revised return offers a solution. It provides a mechanism for taxpayers to rectify these errors and ensure their filings are accurate.
A revised return is filed under Section 139(5) of the Income Tax Act, and its primary purpose is to allow taxpayers to amend the details of their tax returns after they’ve been submitted. The section ensures that taxpayers can correct mistakes before the assessment process is completed, preventing unnecessary penalties or disputes with the tax department. By filing a revised return, individuals can fix discrepancies, update income details, or include additional information that may have been omitted from the original or belated return.
This provision highlights the importance of accurate tax filing and allows taxpayers a second chance to correct their returns within the prescribed timelines, ensuring that their tax records remain in good standing with the authorities.
Key Points About Revised Returns
Purpose:
A revised return is primarily filed to correct any errors or omissions in the original or belated return. These errors can be related to a variety of issues such as incorrect income reporting, missed deductions, or mistakes in calculations. Essentially, if a taxpayer realizes that they made a mistake in their filed return, whether it’s an error in income, deductions, or exemptions—they can submit a revised return to rectify these mistakes. This process ensures the accuracy of their tax filing and helps prevent any discrepancies or legal complications.
Filing Deadline:
Revised returns can be filed by December 31 of the assessment year or before the completion of the assessment, whichever comes first. This gives taxpayers an opportunity to correct any mistakes made in their original filing. It’s important to note that the deadline for filing a revised return is strict, if you miss this deadline, you may not be able to submit a revised return for that particular assessment year.
Penalty:
Generally, no penalty is imposed for filing a revised return. However, if the error in the original return was found to be intentional or fraudulent, then penalties may apply. These penalties are typically imposed when the tax department identifies that the taxpayer intentionally misrepresented facts or concealed information to reduce their tax liability. Therefore, it’s crucial that any revisions made to a return are genuine and accurate, as deliberate misrepresentation can result in penalties.
Eligibility:
Anyone who has already filed an original or belated return can file a revised return if they discover an error. This applies to both individual and business taxpayers. The process involves filling out the revised return form (ITR-1, ITR-2, etc.) with the corrected information and submitting it through the e-filing portal. It is also important to verify the revised return through the e-verification process once submitted, to ensure that the correction is officially recorded.
Updated Return Under Section 139(8A)
The Updated Return, introduced by the Finance Act, 2022, provides a new window for taxpayers to file their returns within a longer time frame, even after the deadlines for belated and revised returns have passed. This provision allows taxpayers to file their returns within 24 months from the end of the relevant assessment year, giving a much-needed extension for individuals and businesses who missed all prior deadlines for filing returns.
As per the Union Budget 2025, the period of 24 months has been extended to 48 months. Thus, it gives taxpayers additional time to make important corrections.
Extended Deadlines as Per the Union Budget 2025
Using the revised filing window, taxpayers can file ITR-U within 4 years from the end of the relevant assessment year. Following are the deadlines for different financial years:
For FY 2021-22 (AY 2022-23): File ITR-U until March 31, 2025.
For FY 2022-23 (AY 2023-24): File ITR-U until March 31, 2026.
For FY 2023-24 (AY 2024-25): File ITR-U until March 31, 2027.
Difference from Belated and Revised Returns:
While a belated return is filed when the taxpayer misses the original deadline, and a revised return is filed to correct errors in an already filed return, the updated return is a separate category introduced for taxpayers who missed the deadlines for both. Unlike belated and revised returns, which have strict filing deadlines (December 31 of the assessment year or before assessment completion), updated returns allow taxpayers a more extended filing period, up to 24 months from the end of the relevant assessment year.
Eligibility for Filing and Advantages:
The updated return is available for anyone who was required to file a return under the Income Tax Act but missed the deadlines for belated or revised returns. The key advantage of filing an updated return is the extended time frame, which gives taxpayers more flexibility and the opportunity to come into compliance without facing harsher penalties. Additionally, there is no penalty for filing an updated return, as long as the tax due is paid along with the filing. This provision encourages taxpayers to correct their records and avoid any legal or financial complications that could arise from missed deadlines.
Differences Between Belated and Revised Returns
Category | Belated Return | Revised Return |
Filing Purpose | Filed when the original deadline is missed, either July 31 or September 30 depending on audit requirements. | Filed to correct errors or omissions in the original or belated return, such as missed income or incorrect deductions. |
Penalty/Interest | Late fee of up to ₹5,000 (₹1,000 for income below ₹5 lakh). Interest at 1% per month on tax due. | No penalty unless the error is intentional or fraudulent. No interest unless tax remains unpaid. |
Eligibility Criteria | Anyone who missed the deadline for filing the original return can file a belated return. | Can be filed by anyone who has filed an original or belated return to rectify mistakes. |
Tax Regime | Can only be filed under the new tax regime starting FY 2023-24, meaning no deductions under the old regime. | Can be filed under both new and old tax regimes, allowing for claims of deductions and exemptions. |
Penalties And Interest On Belated Vs Revised Returns
Category | Belated Return | Revised Return |
Filing Deadline | After original deadline, up to January 15 for AY 2024-25 | Any time before the assessment is completed or by December 31 of the assessment year |
Penalty on Filing | Up to ₹5,000 (₹1,000 for income ≤ ₹5 lakh) | No penalty unless the error is intentional or fraudulent |
Interest Charges | 1% per month on any outstanding tax due | 1% per month on outstanding tax, if any |
Conditions for Penalties | Penalties apply if filed after the due date, unless income is ≤ ₹5 lakh | Penalties apply for intentional or fraudulent misreporting |
Eligibility for Belated and Revised Returns
Criteria | Belated Return | Revised Return |
Eligibility | Filed when the original return deadline is missed. | Filed to correct errors or omissions in the original or belated return. |
Filing Timeline | Must be filed by the end of the assessment year. | Can be filed until December 31 of the assessment year or before completion of the assessment. |
Income Conditions | No income-based restrictions. | No restrictions based on income either. |
Purpose | To file a return after missing the original deadline. | To correct or update information in an original or belated return. |
Important Deadlines to Remember
Understanding the key deadlines for filing income tax returns is essential to avoid penalties and interest. Below is a summary of the important dates for belated, revised, and updated returns:
Original Return Filing Deadline
For individuals not requiring an audit: July 31 of the assessment year.
For individuals requiring an audit: September 30 of the assessment year.
Belated Return Filing Deadline
Typically, a belated return must be filed by December 31 of the assessment year. However, for AY 2024-25, this deadline has been extended to January 15, 2025.
After this date, the opportunity to file a belated return may be lost unless specific conditions apply.
Revised Return Filing Deadline
A revised return can be filed by December 31 of the assessment year or before the completion of the assessment, whichever is earlier.
This allows taxpayers to correct any mistakes or omissions in their initial filings. The filing of revised returns helps in ensuring that taxpayers do not face penalties for inadvertent errors.
Updated Return Filing Deadline
Updated returns, introduced by the Finance Act, 2022, can be filed within 24 months from the end of the relevant assessment year.
This provision allows taxpayers to file returns even after the deadlines for belated and revised returns have passed.
Extended Deadlines for AY 2024-25
For Assessment Year (AY) 2024-25, the Indian Income Tax Department has extended the deadline for filing belated returns. The new extended deadline is January 15, 2025. This extension provides taxpayers with additional time to file their returns without the risk of facing penalties for late filing. It’s crucial for taxpayers to make use of this extension, especially if they have missed the original filing deadline.
In addition, any taxpayer who wishes to correct their earlier returns through a revised filing can do so by the stipulated deadlines, ensuring they remain in compliance with the tax laws.
Conclusion
Understanding the key differences between belated and revised returns under the Indian Income Tax Act is crucial for taxpayers looking to maintain compliance and avoid unnecessary penalties. While belated returns are for cases where the original filing deadline has been missed, revised returns offer a way to correct errors or omissions in previously filed returns. Knowing the deadlines, eligibility criteria, and penalty structures for both types of returns can help taxpayers navigate the filing process smoothly and make informed decisions to avoid tax-related issues.
FAQs
What is the penalty for filing a belated return?
The penalty for filing a belated return can be up to ₹5,000. For taxpayers with income up to ₹5 lakh, the penalty is capped at ₹1,000. This fee is applicable in addition to any interest on overdue tax.
Can a revised return be filed after the assessment is completed?
No, a revised return must be filed by December 31 of the assessment year or before the completion of the assessment, whichever is earlier. Once the assessment is completed, a revised return cannot be filed.
What happens if I miss the deadline for a revised return?
If the deadline for filing a revised return is missed, you cannot correct any errors or omissions through a revised return. However, you may still be able to file an updated return, depending on the circumstances and available provisions.
How do I know if I’m eligible to file a belated return?
You are eligible to file a belated return if you missed the original deadline for filing your income tax return. The belated return can be filed by December 31 of the assessment year, or by the extended deadline, if applicable.
Can I file a belated return after the deadline for a revised return has passed?
Yes, a belated return can be filed even after the deadline for filing a revised return has passed. However, belated returns must be filed by the extended deadline (e.g., January 15, 2025, for AY 2024-25).
What is the difference between a belated return and an updated return?
A belated return is filed after the original deadline has passed, while an updated return, introduced by the Finance Act of 2022, allows filing within 24 months from the end of the relevant assessment year, even after the deadlines for both belated and revised returns.
How is interest calculated on a belated return?
Interest on a belated return is calculated at the rate of 1% per month on the tax due from the original due date until the belated return is filed.
Can I claim deductions in a belated return?
No, from FY 2023-24, belated returns can only be filed under the new tax regime, and taxpayers cannot claim deductions available under the old tax regime.
Is there any penalty for filing a revised return?
No, there is no penalty for filing a revised return unless the error or omission was intentional or fraudulent. Revised returns are intended to correct genuine mistakes.
When can I file an updated return?
An updated return can be filed within 24 months from the end of the relevant assessment year. This provision was introduced by the Finance Act, 2022, and provides taxpayers with a final opportunity to file or correct their returns.
Do I need to pay any additional taxes when filing a revised return?
If the revised return shows a higher taxable income or a tax liability, you will need to pay the additional tax due, along with any interest for late payment.
How can I avoid penalties while filing belated or revised returns?
To avoid penalties, file your returns on time. If you miss the deadline, file a belated return as soon as possible to minimize the late fee. Ensure your returns are accurate to avoid the need for revised returns.
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